Gold & Precious Metals

SAN FRANCISCO (MarketWatch) — Gold futures climbed by more than $30 an ounce on Tuesday, with analysts attributing the rally to short covering as investors continued to speculate whether the Federal Reserve will begin scaling back its bond-buying program as soon as this month.

The gains for gold and silver are “no doubt due to a large extent to speculative financial investors covering their short positions, having previously built up record-high bets on falling prices,” wrote analysts at Commerzbank AG in a note to clients.

full article HERE

Silver Set to Double, According to… Apple?

OB-EO572 Silver G 20090930170404We all have our reasons for following Apple. I track it because this tech behemoth is a massive global consumer of metals – base, rare earth, and precious.

And right now, Apple is giving us some surprising indications that thedemand for silver is much higher than its current price would have us believe.

Actually, the first “sign” came to us back in January when Apple had to delay new 27-inch iMac deliveries by up to four weeks.

Of course, the company never specified exactly what was causing the delay… but the rumors flew.

The most intriguing rumors centered on a possible shortage of industrial silver in China.

Regardless, the Apple “indicator” is just one reason silver could double over the next 12 months.

There are five other compelling clues that indicate silver’s price has temporarily decoupled from what the demand data dictate…

Bullish Silver Demand Indicator No. 1

 

Huge Silver Premiums
 

We all know about the drubbing that silver took in mid-April. While silver dropped from $32 in February to $18.50 by mid-June, something amazing happened.

Buyers stepped up, and supply became so scarce that premiums nearly quintupled from 8% to 37% above spot prices.

And that’s if you could even get your hands on it.

Essentially, almost no one was selling. Yet a lot of buyers recognized that silver was “on sale” and decided to stock up.

But no one saw this next one coming…

 

Bullish Silver Demand Indicator No. 2

U.S. Mint Sales Record

….continue reading No. 2 thru 5. If you are short of time at least take a quick scan down and read Indicator No. 5 – ED

Kitco News) – Nearby Comex gold futures prices hit an all-time record high of $1,923.70 an ounce in September of 2011. For the past two-plus years since then, the bulls have not had much to crow about as prices have shed over $500 an ounce.

Hedge funds are the least bullish on gold since 2007 as signs of faster U.S. economic growth bolster the case for the Federal Reserve to trim stimulus and cut demand for haven assets.

The net-long position in gold fell 16 percent to 26,774 futures and options in the week ended Dec. 3, the lowest since June 2007, U.S. Commodity Futures Trading Commission data show. Short bets rose 6.2 percent to 79,631, within 0.6 percent of the record reached in July. Net-bullish wagersacross 18 U.S.-traded commodities climbed to a four-week high. The Standard & Poor’s GSCI gauge of 24 raw materials capped the biggest weekly gain since August as faster economic growth boosted prospects for energy, metals and grains consumption.

Gold is heading for the biggest annual decline in three decades as equities advance and inflation slows. The U.S. unemployment rate reached a five-year low in November and third-quarter economic growth exceeded analyst estimates, government reports showed last week. The share of economists predicting the Fed will taper bond purchases this month doubled after the jobs report Dec. 6. Bullion reached a record in September 2011 as the Fed pumped more than $2 trillion into the financial system.

“Gold is experiencing the flip side of some of the euphoria that it had from 2009 to 2011,” said Sameer Samana, a St. Louis-based strategist at Wells Fargo Advisors LLC, which oversees about $1.3 trillion of assets. “People are experiencing buyers’ remorse as they look for other places to try to store value. Until the market is more concerned about inflation, gold will have a tough time getting traction.”

….full article HERE

FORGET ABOUT TRYING TO GET RICH WITH GOLD…

…..YOU’RE GOING TO NEED IT TO SURVIVE!

WeimarRepublicHyperinflation   With the precious metals market in the doldrums and at the bottom of a thirty month correction, there has definitely been some hand wringing and a whole bunch of moping from investors who purchased gold and silver at or near the 2011 highs. This is natural and to be expected. Nobody wants to lose money. People purchase investments ostensibly to make money – hopefully, a lot of it.

Here at the trading desk of Liberty Gold and Silver, we hear our share of complaints as well. However, the complaints originate predominantly from a small minority of our customers. A synopsis of the fundamental attitudes of this minority goes something like this: “We bought our gold and silver not for fundamental reasons, such as safety and security, but solely to make a so-called quick “paper” profit in the same way that stock day traders and house flippers do. Precious metals are simply another trading vehicle, no different than any other that is strictly used for financial gain; and we got into this because we noticed the markets were surging just like the recent Bitcoin phenomenon and we wanted to get in on the exciting fast action.”

…much more HERE in this